VANCOUVER, British Columbia, Aug. 08, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- The Yield Growth Corp. (CSE:BOSS) (BOSQF) (YG3.F) is pleased to announce its second quarter investor highlights. Over the past several months, the company has undertaken several initiatives to increase its reach and build valuable infrastructure to support future growth.
- More than 130 retail locations have signed on to carry Urban Juve products in Canada and the US. The locations are geographically diverse, and will bring luxury, hemp-powered skincare products to new markets across North America
- Yield Growth signed an agreement on June 12, 2019 with Melorganics , who will act as the exclusive retail distributor and non-exclusive e-commerce distributor for Urban Juve products in Greece and Cyprus. To maintain exclusively in the territory, Melorganics will purchase a minimum of US $300,000 in Urban Juve products in the first year and US $500,000 in each subsequent year
- On April 30, 2019, Yield Growth has signed a consumer marketing and sales alliance with ipsy, one of the world's largest beauty subscription communities. Urban Juve products will be found in the company's Glam Bag and are already available online on ipsy Shopper. ipsy has over three million monthly members, more than half a billion content views every month and relationships with 8,000+ digital content creators
- Urban Juve expanded internationally and is now available to purchasers in the largest skin care markets in the world-including China, U.S., Canada, Japan, South Korea, Germany, Greece and Cyprus
Brand and Marketing Highlights:
- Urban Juve secured international media coverage in leading publications, including Elle Magazine, Zoomer and the September edition of British Vogue, which was guest edited by Meghan Markle, now Duchess of Sussex, who used her stint to highlight women who are "forces for change"
- Yield Growth engaged a New York-based strategic graphic design and branding company, The Design Spot, for brand direction for packaging, merchandising and point-of-sale deliverables for Wright & Well Manufacturing and Urban Juve. Their portfolio includes work for renowned cosmetics brands such as Brandt MD, L'Oreal USA, Origins, Revlon, Dove and hundreds more
- Yield Growth has also engaged Cornerstone Strategic Branding, a brand and packaging design agency based in New York with 28 years of expertise, whose clients include major international brands -- Perrier, Nestle, Seagrams and Labatt -- to complete a visual positioning study and subsequent creation of brand and packaging design for Yield Growth's new hemp and cannabis beverage lines
- Wright & Well, a wholly owned subsidiary of Yield Growth, is preparing its first shipment of product for the Oregon market. The brand offers wellness and therapeutic products that incorporate high-quality CBD, THC, hemp root oil and terpenes to support a healthy lifestyle
- Yield Growth kicked off various initiatives to boost brand awareness, increase reach and drive sales, including influencer marketing and social media campaigns
- Yield Growth welcomed a new Chief Operating Officer, Tamara Melck, who was most recently Aritzia's Vice President, Corporate Operations and Executive Vice President, People & Culture. Melck has a proven track record for scaling businesses, and will provide invaluable expertise as Yield Growth continues to expand
- Earlier this year, Yield Growth added Jeff Smith as Chairman of the Advisory Board. As former Group Chairman for Consumer North America for Johnson & Johnson (JNJ), Jeff's division represented more than 42% of global revenue, and over US$6.5 billion in annual revenue with mid-single digit growth rates. In 2011, Jeff was appointed President, U.S. Skincare for North America and had full P&L responsibility for the skincare portfolio within the U.S. As President of Johnson & Johnson's largest business unit, Jeff grew it from the 3rd largest skincare company to #1 in the U.S. over 3.5 years
Q2, 2019 Financial Highlights:
In the first half of fiscal 2019, Yield Growth its total assets by 133% to $6.1 million from November 30, 2018 to May 31, 2019. This included an increase in marketable securities as proceeds from licensing and consulting revenues, additions of intangible assets in product formulas and technology, and certain working capital assets including prepayments and inventory to be deployed in the operations of its growing business.
Revenues were from services offered through Thrive, licensing of formulas and brands and Urban Juve product sales. Yield Growth realized revenue of $1,176,629 and $1,977,128 for the three and six months ended May 31, 2019 as compared to $190,116 and $1,998,929 for the same periods of the prior year. Revenues in Q2 2019 increased by 47% from Q1 2019 and increased by 519% over the same period from the previous year.
Consulting revenue was $71,133 and $780,372 for the three and six months ended May 31, 2019 as compared to $190,116 and $198,929 respectively for the same periods of the prior year.
During the three months ended May 31, 2019, Yield Growth signed and delivered a licensing agreement with Antler Retail which generated revenue of $1,000,000 for the three months ended May 31, 2019.
Licensing and product sales revenue also included sales of products on the Company's ecommerce website and through retail locations in Canada. As Yield Growth continues to develop our Urban Juve product distribution internationally, it anticipates to fulfill the following orders in the next six months:
- Initial order anticipated for Urban Juve products for distribution in Greece and Cyprus of approximately $50,000 once products are registered for sale in the European Union
- Initial order from a U.S. company for approximately $150k worth of product which we expect to fulfill in Q4 2019
- Urban Juve is in the process of creating secondary packaging to meet Quebec additional French language requirements to deliver products as requested by a Canadian retail chain
- Yield Growth in negotiations to sign distribution agreements for territories in South America, Asia and Europe, which, if signed, could result in significant orders over the next six months
For the 3 and 6 months ended May 31, 2019, Yield Growth dedicated resources on building corporate and brand assets, including developing multiple product pipelines through formulation and testing. Assets increased by 133% to $6.1 million. Liquid assets also strengthened with current ratio improved from 3.3 at November 30, 2018 to 4.1 at May 31, 2019.
The company incurred a loss of $4.1 million and $7.9 million for the 3 and 6 months ended May 31, 2019, which included non-cash items of $1.9 and $2.6 million, respectively. At the current stage, Yield Growth intends to continue to invest in developing brand and product assets, manufacturing of inventory, and marketing and distributing its products around the globe.
Detailed Q2, 2019 Financial Statements and Management Discussion and Analysis can be found on SEDAR.
Yield Growth is oversubscribed for its financing announced August 5, 2019 of and is today closing the financing for approximately $1,735,000 of capital.
About The Yield Growth Corp.
The Yield Growth Corp. develops, manufactures and distributes cannabis and hemp infused product brands Urban Juve and Wright & Well and has a catalogue of over 200 wellness and beauty formulas. It intends to disrupt the international wellness market, which is a $4.2 trillion global economy, according to the Global Wellness Institute, by connecting ancient healing with modern science and technology. Its management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, M·A·C Cosmetics, Skechers, Best Buy, Aritzia, Coca-Cola and Pepsi Corporation. Yield Growth serves mainstream luxury consumers who seek sophisticated wellness products. Its flagship consumer brand, Urban Juve, has proprietary, patent-pending extraction technology and has 12 patents pending. Yield Growth is building sophisticated international distribution channels and has multiple revenue streams including services, licensing and product sales.
Investor Relations Contacts:
Penny Green, President & CEO
Kristina Pillon, Investor Relations
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking information and statements (collectively, "forward looking statements") under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates, forecasts, beliefs and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks related to the development, testing, licensing, intellectual property protection, and sale of, and demand for, Urban Juve, Wright & Well, UJ Beverages and UJ Edibles products, general business, economic, competitive, political and social uncertainties, delay or failure to receive board or regulatory approvals where applicable, and the state of the capital markets. Yield Growth cautions readers not to place undue reliance on forward-looking statements provided by Yield Growth, as such forward-looking statements are not a guarantee of future results or performance and actual results may differ materially. The forward-looking statements contained in this press release are made as of the date of this press release, and Yield Growth expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
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